He coached the Uruguay U-20 national team, finishing runner-up in the 1997 FIFA World Youth Championship.
In 2001, he was chosen to replace Daniel Passarella, qualifying for the 2002 FIFA World Cup after finishing 5th in the South American zone and winning a playoff against Australia.
Uruguay was drawn into group A alongside world champions France, Denmark and eventual tournament revelation Senegal.
Despite coming back from a 0–3 at half time, Richard Morales narrowly missed a fourth goal with the goalkeeper down, which left Uruguay in 3rd place and out of the next round.
[citation needed] In 2004, he coached Argentine side Rosario Central[2] but resigned after only 2 matches, because of differences with the board and a defeat to Newell's Old Boys in the local derby.